Hongkong Land - CGS-CIMB Research 2022-03-05: More Involvement In China Development Properties & Investment Properties

Hongkong Land - More Involvement In China Development Properties & Investment Properties

HONGKONG LAND HOLDINGS LIMITED (SGX:H78)

Hongkong Land (SGX:H78) reported flattish underlying profit in FY21 with flattish DPS. Base rent reversions in Hongkong investment properties (IP) will likely remain negative with rent relief in FY22F.
Hongkong Land expects more China development properties (DP) booking with increased unbooked DP sales; it will complete 1.1m sq m of China IP through FY26F to strengthen its IP revenue.
Reiterate ADD call on Hongkong Land. We cut FY22F/23F earnings per share (EPS) forecast for Hongkong Land by 5%/6% due to the new round of retail rent relief and slower recovery of office rents in Hongkong and Singapore. Our target price for Hongkong Land is lowered to US$6.1, still based on a 40% discount to NAV, as we also trim its NAV/share by 3% to US$10.2.
Hongkong Land's ongoing share buyback provides support to share price and potentially improves FY22F EPS by another 2%.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Raymond CHENG CFA CGS-CIMB Research | Will CHU CFA CGS-CIMB Research | Steven MAK CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-05

SGX Stock Analyst Report ADD MAINTAIN ADD 6.300 SAME 6.300